A. As a condition to approval of any density bonus pursuant to this chapter, the applicant shall agree to enter into a density bonus housing agreement with the city, the housing authority acting on behalf of the city, or the Capitol Area Development Authority that shall be binding upon the applicant and all successors in interest. The executed density bonus housing agreement shall be recorded on the parcel or parcels designated for the construction of target units. The approval and recordation shall take place prior to final map approval or, where a map is not being processed, prior to issuance of building permits for the parcels or units.
B. The density bonus housing agreement shall include the following provisions:
1. The total number of units approved for the housing development, including the number of target units;
2. A description of the household income group to be accommodated by the housing development as outlined in section 17.704.030 of this chapter, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost;
3. The location, unit sizes (square feet), and number of bedrooms of target units;
4. Tenure-of-use restrictions for target units as set forth in section 17.704.040;
5. A schedule for completion and occupancy of target units;
6. A description of the specific density bonus and of the additional incentives or equivalent financial incentives being provided by the city;
7. A description of remedies for breach of the agreement by either party, including a provision that tenants or qualified purchasers are third party beneficiaries under the agreement; and
8. Any other provisions appropriate to ensure implementation and compliance with this chapter.
C. In the case of for-sale housing developments, the density bonus housing agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period:
1. A requirement that affordable for-sale units shall, upon initial sale, be sold to eligible very-low- or lower-income households at an affordable sales price and affordable housing cost, or to qualifying senior citizen residents, as defined by this chapter;
2. A requirement that initial occupancy shall be by eligible very-low- or lower-income household owner-occupant, or qualifying senior citizen resident owner-occupants, as defined in this chapter; and
3. The terms for future sales and recapture of any equity in order to ensure continued affordability for the requisite time period.
D. In the case of rental housing developments, the agreement shall provide for the following conditions governing the use of target units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants;
2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this section; and
3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each household occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit. (Ord. 2024-0017 § 64; Ord. 2013-0020 § 1; Ord. 2013-0007 § 1)